Law: Income Tax Act, 1961

Section: 80-IA,80-IB,80HHC

Section 80-IA, read with sections 80-IB and 80HHC, of the Income-tax Act, 1961 - Deductions - Profit and gains from industrial undertakings other than infrastructure development undertakings (Computation of deduction) - Whether in view of difference of opinion amongst members of division bench of Supreme Court regarding whether assessee could claim simultaneous deductions under sections 80-IA/80-IB and 80HHC on same profits, matter was to be referred to Larger Bench for consideration - Held, yes [Para 34][ Matter referred to Larger Bench] FACTS â–  The assessee was having several industrial units having different activities or different businesses. â–  The Assessing Officer allowed deductions under section 80HHC without considering the fact that the assessee had also claimed and was allowed deduction under the provisions of section 80-IB. â–  On revision, the Commissioner was of the view that the Assessing Officer was not correct in allowing deductions under sections 80-IB/80-IA as well as under section 80HHC and, therefore, directed the Assessing Officer to revise the assessment order. â–  On appeal, the Tribunal confirmed the order of the Commissioner. â–  On further appeal, the High Court allowed the appeal of the assessee and quashed and set aside the order of the Tribunal. â–  On appeal to the Supreme Court the revenue was of the view that having once obtained deduction under the provisions of sections 80-IB or/and 80-IA, no assessee could then avail deductions under section 80HHC in respect of the same profits. It was specifically stated on behalf of the revenue that section 80-IA(9) had been amended with effect from 1-4-2000 so as to see that the total deduction did not exceed total profits and gains of the business and in respect of the same profits, deductions under section 80HHC and section 80-IA or 80-IB together could not have been allowed. HELD Anil R. Dave, J. â–  The High Court is not right when it decided to allow deductions in respect of same profits under section 80HHC as well as under section 80-IA or section 80-IB.[Para 21] â–  One can very well see from the provisions of section 80-IA(9) that…